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If Disposable Income Increases by $100 Million, and Consumption Increases

Question 3

Multiple Choice

If disposable income increases by $100 million, and consumption increases by $90 million, then the marginal propensity to consume is

A) 0.9.
B) 0.8.
C) 0.75.
D) 0.6.
E) 0.5.

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